CG Semi unveils one of India’s first end-to-end OSAT facilities
CG Semi, a subsidiary of CG Power and Industrial Solutions and part of the Murugappa Group, has launched its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.
With this launch, CG Semi becomes one of India’s first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies. This is a major step in strengthening India's semiconductor capabilities and supports the country's goal of becoming self-reliant while also serving global markets.
Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing more than USD 870 million over five years to develop two facilities (G1 and G2) in Sanand, Gujarat.
The G1 facility – inaugurated today – will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. The facility features high-yield equipment, a Manufacturing Execution System (MES) for Level 1 automation and traceability, as well as in-house labs for reliability and failure analysis. It is currently undergoing ISO 9001 and IATF 16949 certification. C
Located about three kilometres from G1, the G2 facility is under construction and expected to be completed by the end of 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.
“This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty,” says Mr. Vellayan Subbiah, Chairman, CG Power, in a press release.
